As previously discussed, we have many clients who have found
themselves in the midst of the Oil and Natural Gas craze that has swept through Pennsylvania (PA). As I have come across nuances in the leasing process and potential pitfalls I have tried to apprise you of them. Recently, we had a client who signed over their natural gas rights on a property in Sullivan County years ago without an attorney review. Their complaint is that the Gas Company has placed machinery on the property and as a result, the taxing authority has removed the property from Act 319. The individual is now responsible for Roll Back Taxes which are significant. Let this be a warning, the lease signed with the Oil and Natural Gas Company must state that they are responsible for these roll back taxes or you might get a shock down the road!
Our firm is representing a number of clients through the lease review and negotiation process. We also have individuals coming to us AFTER they have signed a lease and asking if there is anything they can do to change something in a lease they have signed. It is often too late or at least more difficult to make a change after signing the lease so make sure you have a proper review in advance of signing.
